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Is Infineon Technologies (IFNNY) Stock Undervalued Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company to watch right now is Infineon Technologies (IFNNY - Free Report) . IFNNY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A.

We should also highlight that IFNNY has a P/B ratio of 2.64. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 6.74. Over the past 12 months, IFNNY's P/B has been as high as 4.08 and as low as 2.28, with a median of 3.17.

Finally, investors should note that IFNNY has a P/CF ratio of 8.55. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. IFNNY's P/CF compares to its industry's average P/CF of 19.57. IFNNY's P/CF has been as high as 13.73 and as low as 7.39, with a median of 10.34, all within the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Infineon Technologies is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, IFNNY feels like a great value stock at the moment.


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